Monday, December 29, 2008

The law, known as HR4040: http://www.cpsc.gov/cpsia.pdfAs it stands now each component must be tested to comply.

Can I test at home? The testing labs must be accredited by the CPSC. You can find a list at: http://www.cpsc.gov/about/cpsia/labaccred.html

What can you do?Read this letter, contact your lawmakers and let your voice be heard. Dear Friend,

I want to bring to your attention an urgent legal matter affecting anyone making, distributing or selling children's products of any kind. On September 12, 2008, the General Counsel of the Consumer Product Safety Commission (CPSC) issued an opinion stating that the new safety standards of the Consumer Product Safety Improvement Act of 2008 (CPSIA) applies retroactively to inventory (Falvey Opinion). This opinion poses a serious threat because it means that we will all be liable for any potential violation of law from products already on our shelves, although these products are safe and were purchased or produced legally and in compliance with the law. The potentially disastrous financial exposure we all face was highlighted in the Wall Street Journal in an article published on November 18, 2008 (see attached). Despite calls for its reconsideration, the Falvey Opinion was recently reaffirmed by the CPSC General Counsel.

The CPSIA was enacted in the summer of 2008 in reaction to a wave of toy recalls in 2007, largely due to lead-in-paint (already illegal at the time). The anger of Congress, inflamed by media like the Chicago Tribune and various activists, turned a reasonable concern over safety procedures into a fear of everything. The CPSIA was crafted to eliminate any conceivable possibility of danger, regardless of science, risk, burden or consequence. It affects a breathtaking array of products intended for children, including footwear, carpets, clothing, bedding, luggage, lamps, toys, books, consumer electronics, school supplies, office supplies, jewelry, housewares, sports equipment, and so on. Although well-intentioned, implementation of the CPSIA is throwing another wet blanket over the weakening economy and will become a big part of your economic reality soon. The new law exposes your business and your supply chain to excessive costs and recordkeeping expenses unrelated to safety risks and enforces its new rules with minimum penalties of $100,000 per violation and the threat of felony convictions. These burdens bear no rational relationship to improvements in children's product safety.

Defenders of the CPSIA claim that the need for new safety standards is so urgent that they must be imposed with retroactive effect. Don't be fooled by activists in the newspaper and on TV: opposing the tight rules of the CPSIA does not create a choice between safety and jobs. The safety of children remains the priority of the children's products industry, including our own school supply and educational toy industries. The absence of an appropriate transition period for existing inventory under the Falvey Opinion is nonetheless creating a significant job loss scenario in the name of safety.

WHAT SHOULD WE DO TO RESPOND TO THIS THREAT?

The legal issues under this law, especially the General Counsel's retroactivity opinion, threaten your business' ability to make a profit. It's that serious. The time to act is NOW. As the Wall Street Journal article makes clear, the voice of commerce has not been heard by Congress. People are afraid to say anything in opposition to a law purporting to protect children. We must face the reality, however, of a sick economy and the unbearable burdens under the CPSIA. Ignoring this law is not a choice for any of us - like it or not, the CPSIA is a game changer.

We are threatened as a community, and we must speak out as a community to beat back this threat. Here's what you can do:

First, write the CPSC, House and Senate staffers, and your own Congressmen and Senators to express your views of this law. We have attached three sample letters plus email address and contact information for U.S. government officials. Feel free to put your concerns in your own words, or use the attached sample letters. To create an email, simply add your name and company information at the bottom of the letter, and cut and paste into an email using the contacts in the attached document. Please send emails right away and make calls expressing your view on the seriousness of this issue.

Second, send copies of those letters and emails to your local newspapers, TV stations, and radio stations. It is my hope that the Wall Street Journal article will be the first of many articles exposing the devastating unintended consequences of the CPSIA.

Third, ask your business partners, friends, families and neighbors to get involved. Washington can't and won't act unless it hears the voices of constituents louder than the voices of the activists which have thus far controlled this process.

The business community needs to raise its voice. Your Congressman and Senators will be very concerned about jobs and the state of the economy in your area. Ask them to get involved to insure that local businesses are not brought to their knees by overreaching government regulations.

Some of you make or sell children's products that fall outside Learning Resources' educational toy and educational materials sectors. Please feel free to forward this email or adapt it to notify other children's product companies. I have no pride of authorship - please use this letter as you see fit. We need to draw attention to these issues urgently and generate a loud community response.

If we act as one united community, we can exert enough political pressure to reverse the Falvey Opinion and possibly even build a consensus for an appropriate review of the CPSIA itself.